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During a quarter, ChenMitch Corp. made sales of goods amounting to P1,000,000 plus output tax of P120,000 for a total of P1,120,000. It also made sales of services amounting to P200,000 plus output tax of P24,000 for a total of P224,000.
Problem 1: How much is the company's creditable input tax?
a. P5,000
b. P126,000
c. P105,000
d. P215,000
Problem 2: Based on the preceding number, how much is the VAT payable or excess tax credit?
a. P39,000
c. P108,000
d. P221,000
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